House prices fall in Perth's premier areas

House prices in Perth's most sought after suburbs have fallen sharply as the mining downturn rolls on.

The city's prestigious waterfront suburbs have been the hardest hit as the number of dwellings on the market reaches levels not seen since the global financial crisis.

House prices in Perth's most expensive suburb, Peppermint Grove, have fallen 19.4 per cent to $2.9 million in the year to September, the latest Real Estate Institute of Western Australia (REIWA) figures show.

The figures are based on an annual change in the annual median price in the 12 months to September, 2015.

House prices in neighbouring Mosman Park fell 5.4 per cent to $1.32 million on an annual basis while the nearby beachside suburb of Cottesloe recorded a 2.7 per cent decline in its annual median price to $1.8 million.

On a quarterly basis, comparing the September, 2015 quarter median with the September, 2014 quarter median, house prices in the riverside suburb of Mosman Park were 30 per cent lower at $1.01 million while Cottesloe prices declined 14.4 per cent to $1.8 million.

Using this comparison, central Perth prices were 15 per cent lower at $841,000 and the inner city Subiaco council area was down 13.5 per cent to $1.04 million.